Chapter 3
Smart, Connected Products with APIs Transform Industry Ecosystems
Jari Collin,
Jarkko Pellikka, Jyrki T. J. Penttinen,
Jari Collin
Adjunct Professor at Aalto University and CTO at Telia Finland
Search for more papers by this authorBook Author(s):Jari Collin,
Jarkko Pellikka, Jyrki T. J. Penttinen,
Jari Collin
Adjunct Professor at Aalto University and CTO at Telia Finland
Search for more papers by this authorFirst published: 24 November 2023
Summary
Technological advances under the umbrella of Industry 4.0 are enabling asset-intensive industries to become data-driven, adopt zero-touch automation, and transform the way people and machines work together. However, this requires that companies can co-innovate and combine their offerings and capabilities with their strategic ecosystem partners. This kind of ecosystem approach has become an essential part of data-driven business strategy planning and execution as part of digital transformation across industries. Via well-formulated ecosystem strategy and orchestration, ecosystems can create 5G-enabled competitive advantage by helping enterprises cost-effectively and rapidly develop new business opportunities, monetize the value of digital technologies, and expand their solution opportunities into new customer segments and markets.
References
- M. E. Porter , How competitive forces shape strategy , UK : Macmillan Education , pp. 133 – 143 , 1979 .
- M. Porter , Competitive Strategy , New York : Free Press , 1980 .
- M. Porter , Competitive Advantage , New York : Free Press , 1985 .
- M. Porter and J. Heppelmann , “ How smart, connected products are transforming competition ,” Harvard Business Review , vol. November , pp. 65 – 88 , 2014 .
- M. Porter and J. Heppelmann , “ How smart, connected products are transforming companies ,” Harvard Business Review , vol. October , pp. 97 – 114 , 2015 .
- A. Gawer and M. Cusumano , “ Industry platforms and ecosystem innovation ,” Journal of Product Innovation Management , vol. 31 , no. 3 , pp. 417 – 433 , 2014 .
- M. Brettel , N. Friederichsen , M. Keller and M. Rosenberg , “ How virtualization, decentralization and network building change the manufacturing landscape: An Industry 4.0 perspective ,” International Journal of Information and Communication Engineering , vol. 8 , no. 1 , pp. 37 – 44 , 2014 .
- R. C. Basole and J. Karla , “ On the evolution of mobile platform ecosystem structure and strategy ,” Business & Information Systems Engineering , vol. 3 , no. 5 , p. 313 , 2011 .
-
J. Pellikka
and
T. Ali-Vehmas
, “
Managing innovation ecosystems to create and capture value in ICT industries
,”
Technology Innovation Management Review
, vol.
6
, no.
10
, pp.
17
–
24
,
2016
.
10.22215/timreview/1024 Google Scholar
- N. Foss , J. Schmidt and D. Teece , “ Ecosystem leadership as a dynamic capability ,” Long Range Planning , vol. 56 , no. 1 , p. 102270 , 2022 .
- A. Attour and N. Lazaric , “ From knowledge to business ecosystems: emergence of an entrepreneurial activity during knowledge replication ,” Small Business Economics , vol. 54 , no. 2 , pp. 575 – 587 , 2020 .
- A. Tansley , “ British ecology during the past quartercentury: The plant community and the ecosystem ,” Journal of Ecology , vol. 27 , pp. 513 – 530 , 1939 .
- J. F. Moore , “ Predators and prey: A new ecology of competition ,” Harvard Business Review , vol. 71 , no. 3 , pp. 75 – 83 , 1993 .
- J. Moore , The Death of Competition: Leadership and Strategy in the Age of Business Ecosystems , HarperBusiness , 1996 .
-
K. Valkokari
, “
Business, innovation, and knowledge ecosystems. How they differ and how to survive and thrive within them
,”
Technology Innovation Management Review
, vol.
5
, no.
8
, pp.
17
–
24
,
2015
.
10.22215/timreview/919 Google Scholar
- M. Krivý , Digital Ecosystem: The Journey of a Metaphor , Digital Geography and Society , 2023 .
- K. Möller , S. Nenonen and K. Storbacka , “ Networks, ecosystems, fields, market systems? Making sense of the business environment ,” Industrial Marketing Management , vol. 90 , pp. 380 – 399 , 2020 .
-
O. Dedehayir
,
S. Mäkinen
and
J. Ortt
, “
Roles during innovation ecosystem genesis: A literature review
,”
Technological Forecasting and Social Change
, vol.
138
, pp.
18
–
29
,
2018
.
10.1016/j.techfore.2016.11.028 Google Scholar
- A. Hein , J. Weking , M. Schreieck , M. Wiesche , M. Böhm and H. Krcmar , “ Value co-creation practices in business-to-business platform ecosystems ,” Electronic Markets , vol. 29 , no. 3 , pp. 503 – 518 , 2019 .
- Y. Cai , B. Ramis Ferrer and J. Luis Martinez Lastra , “ Building university-industry co-innovation networks in transnational innovation ecosystems: Towards a transdisciplinary approach of integrating social sciences and artificial intelligence ,” Sustainability , vol. 11 , no. 17 , p. 4633 , 2019 .
- S. Leminen , M. Rajahonka and R. W. M. Wendelin , “ Industrial internet of things business models in the machine-to-machine context ,” Industrial Marketing Management , vol. 84 , pp. 298 – 311 , 2020 .
- E. Autio , S. Nambisan , L. Thomas and M. Wright , “ Digital affordances, spatial affordances, and the genesis of entrepreneurial ecosystems ,” Strategic Entrepreneurship Journal , vol. 12 , no. 1 , pp. 72 – 95 , 2018 .
- E. Autio and L. Thomas , “ Tilting the playing field: Towards an endogenous strategic action theory of ecosystem creation ,” World Scientific Reference on Innovation Volume 3: Open Innovation, Ecosystems and Entrepreneurship: Issues and Perspectives , vol. 3 , pp. 111 – 140 , 2018 .
- K. Ranjan and S. Read , “ An ecosystem perspective synthesis of co-creation research ,” Industrial Marketing Management , vol. 99 , pp. 79 – 96 , 2021 .
- H. Wieland , N. N. Hartmann and S. L. Vargo , “ Business models as service strategy ,” Journal of the Academy of Marketing Science , vol. 45 , pp. 925 – 943 , 2017 .
- T. Palo and J. Tähtinen , “ A network perspective on business models for emerging technology-based services ,” Journal of Business & Industrial Marketing , vol. 26 , pp. 377 – 388 , 2011 .
- E. Stam and A. Van de Ven , “ Entrepreneurial ecosystem elements ,” Small Business Economics , vol. 56 , no. 2 , pp. 809 – 832 , 2021 .
- J. Pellikka and T. Ali-Vehmas , “ Fostering techno-entrepreneurship and open innovation practices in innovation ecosystems-the case of Nokia ,” in Handbook of Research on Techno-Entrepreneurship , Edward Elgar Publishing , pp. 175 – 197 , 2019 .
-
M. Virtanen
and
J. Pellikka
, “
Integrating the opportunity development and commercialisation process
,”
International Journal of Business and Globalisation
, vol.
20
, no.
4
, pp.
479
–
496
,
2018
.
10.1504/IJBG.2018.093583 Google Scholar
- E. Von Hippel , S. Ozawa and J. De Jong , “ The age of the consumer-innovator ,” MIT Sloan Management Review , vol. Fall , pp. 27 – 33 , 2011 .
- M. Jacobides , C. Cennamo and A. Gawer , “ Towards a theory of ecosystems ,” Strategic Management Journal , vol. 39 , no. 8 , pp. 2255 – 2276 , 2018 .
- P. Graça and L. Camarinha-Matos , “ Performance indicators for collaborative business ecosystems – Literature review and trends ,” Technological Forecasting and Social Change , vol. 116 , pp. 237 – 255 , 2017 .
- 5G-IA , “ 5G Infrastructure Association Vision and Societal Challenges – Working Group Business Validation, Models, and Ecosystems Sub-Group ,” 2021 .
- M. Arajärvi , M. Saukonoja and P. Vänttinen , “ Julkisen hallinnon API-periaatteet ,” 2022 . [Online].
- E. Koivula , “ Building Competitive Advantage with API Strategy – Case Study of Established Enterprises ,” Master's Thesis, Aalto University , 2023 .
- M. Kenney and J. Zysman , “ The rise of the platform economy ,” Issues in Science and Technology , vol. 32 , no. 3 , pp. 61 – 69 , 2016 .
- G. Parker , V. Alstyne , C. Marshall and P. Sangeet , Platform Revolution: How Networked Markets are Transforming the Economy and How to Make them Work for You , New York : W. W. Norton & Company, Inc. , 2016 .
- A. Gawer , “ Digital platforms and ecosystems: Remarks on the dominant organizational forms of the digital age ,” Innovation: Organization and Management , vol. 24 , no. 1 , pp. 110 – 124 , 2022 .
- M. Van Alstyne , G. Parker and S. Choudary , “ Pipelines, platforms, and the new rules of strategy ,” Harward Business Review , vol. April, 2016 .
- J. Moilanen , M. Niinioja , M. Seppänen and M. Honkanen , API-talous 101 , Alma , 2018 .
-
A. Gawer
.
Digital platforms and ecosystems: remarks on the dominant organizational forms of the digital age
.
Innovation
, vol.
24
, no.
1
, pp.
110
–
124
,
2022
.
10.1080/14479338.2021.1965888 Google Scholar
- T. Ojanperä and T. O. Vuori . Platform strategy: transform your business with AI, platforms and human intelligence . Kogan Page Publishers , 2021 .
- T. Ojanperä and T. Vuori , Platform Strategy: Transform your Business with AI, Platforms and Human Intelligence , New York : Kogan Page Inc. , 2021 .
- I. Oskam , B. Bossink and A. de Man , “ Valuing value in innovation ecosystems: How cross-sector actors overcome tensions in collaborative sustainable business model development ,” Business & Society , vol. 60 , no. 5 , pp. 1059 – 1091 , 2021 .
- R. Adner , “ Ecosystem as structure: An actionable construct for strategy ,” Journal of Management , vol. 43 , no. 1 , pp. 39 – 58 , 2017 .
- L. E. A. Vaccari , Application Programming Interfaces in Governments: Why, What and How , EU , 2020 .
- M. Shnier , Dictionary of PC Hardware and Data Communications Terms , Sebastopol, CA : O'Reilly Media, Inc. , 1996 .
- D. Jacobson , G. Brail and D. Woods , APIs: A Strategy Guide , O'Reilly Media, Inc. , 2011 .
- J. Davidse , “ API Fundamentals ,” 2020 . [Online]. Available: https://developer.ibm.com/articles/api-fundamentals/?mhsrc=ibmsearch_a&mhq=api . [Accessed 25 May 2023].
- T. Mikkonen , R. Klamma and J. Hernández (eds.), “ Web Engineering: 18th International Conference, ICWE 2018. Lecture Notes in Computer Science , vol. 10845 , Springer , 2018 . doi: 10.1007/978-3-319-91662-0.
- M. Boyd , “ Private, Partner or Public: Which API Strategy Is Best For Business? ,” 2014 . [Online]. Available: https://www.programmableweb.com/news/private-partner-or-public-which-api-strategy-best-business/2014/02/21 . [Accessed 10 April 2023].
